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Supreme Court of India 2020-08-14 allowed

Babulal Vardharji Gurjar vs Veer Gurjar Aluminium Industries Pvt. Ltd. & Anr

Bench: 2 — <UNKNOWN>, <UNKNOWN>

In Brief

In this appeal, the Supreme Court examined whether an application to initiate Corporate Insolvency Resolution Process under Section 7 of the Insolvency and Bankruptcy Code, 2016 was filed within the prescribed limitation period. The Court held that such applications are subject to limitation under Article 61(b) of the Limitation Act, 1963. Since the respondent had clearly stated a date of default in its application, principles of acknowledgment could not extend the limitation period. The Court found the application barred by limitation and allowed the appeal, directing that the proceedings be annulled and the moratorium lifted, permitting other stalled proceedings before other forums to resume.

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Insolvency and Bankruptcy Code Limitation Corporate Insolvency Resolution Process Financial Creditor Default Moratorium

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